Canada selects Lockheed Martin as preferred bidder to build warships

The Canadian Government and Irving Shipbuilding have selected a Lockheed Martin-led team comprising BAE Systems and partners as the preferred designer for the Royal Canadian Navy’s future warships.

BAE Systems’ Type 26 Global Combat Ship frigate design was proposed by the team for the country’s next-generation of warships.

Prior to awarding the final design and construction contract, the government will perform a due diligence exercise. The contract is set to be finalised by March next year, while construction is slated for the following year.

Other participants in the consortium include CAE, MDA, L3 Technologies, and Ultra Electronics, which will supply high-tech platforms for the design.

“The partners will build a total of 15 combat ships, which will replace the country’s existing Iroquois-class destroyers and Halifax-class frigates.”

The partners will build a total of 15 combat ships, which will replace the country’s existing Iroquois-class destroyers and Halifax-class frigates. The aggregate cost of the CSCs to be acquired is estimated to be around C$55bn-C$60bn ($42.43bn-$46.28bn).

In case the due diligence fails to fetch the desired outcome, the government will name the next highest ranked compliant bidder as the preferred designer.

The consortium that won the bid defeated competition from the Alion Science and Technology-led team and other group comprising Spain’s Navantia, Saab and CEA Technologies.

Designs proposed by these teams include one based on the De Zeven Provinciën Air Defence and Command frigate, as well as Navantia’s F-105 respectively.

Previously, BAE gained contracts to build the Type 26 design for the UK and Australia.